Nvidia (NVDA) will release its first-quarter fiscal 2027 financial results on Wednesday, May 20. Despite dominating the artificial intelligence (AI) boom, Nvidia stock is trading surprisingly cheap, and its valuation multiple fails to reflect the company’s solid growth trajectory driven by AI infrastructure spending.
Nvidia continues to benefit from a massive surge in demand for its advanced graphics processing units (GPUs), as hyperscalers and enterprises race to expand AI computing capacity. That demand wave appears far from over.
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In fact, Nvidia management recently raised its expectations for next-generation AI chip platforms Blackwell and Rubin. Earlier, Nvidia projected cumulative GPU demand tied to those architectures at about $500 billion. Nvidia has now doubled that outlook, saying demand and purchase commitments could surpass $1 trillion by 2027.
That forecast highlights that a significant amount of capital is still flowing into AI infrastructure and suggests Nvidia may remain one of the biggest winners of the AI spending cycle for years to come.
With demand for AI chips remaining exceptionally strong, Nvidia could once again deliver explosive revenue and earnings growth in Q1, which may support its share price rally.
Nvidia: Blockbuster Q1 Ahead
Nvidia is poised to deliver another superstar quarter as demand for its GPUs continues to surge across hyperscalers, enterprises, and sovereign AI projects worldwide. The company’s data center business will once again account for the bulk of its revenue.
Notably, Nvidia’s data center business generated $193.7 billion in revenue in fiscal 2026, up 68% year-over-year (YOY). Nvidia’s management expects momentum to continue throughout calendar 2026, with sequential revenue growth throughout the year. In addition, Nvidia has secured sufficient supply and inventory commitments to support demand through 2027, which augurs well for growth.
A major driver behind Nvidia’s solid data center revenue is its next-generation Blackwell platform. Demand for both Blackwell and Blackwell Ultra systems continues to strengthen, positioning the company for solid growth. At the same time, Nvidia is still seeing healthy demand for its Hopper-based products. That broad adoption trend is helping Nvidia deepen its dominance across the AI ecosystem.
